TaxTMI 
TaxTMI 
1997 (1) TMI 466
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....ssessment years in question are 1965-66, 1966-67 and 1967-68. The assessee (respondent) manufactures tyre cord fabric. That tyre cord fabric was, at the relevant time, covered by term "textile" is not in dispute. 3.. Three notifications were issued by the State Government in exercise of powers conferred by section 8(5) of the Central Sales Tax Act, 1956. They are dated 14th December, 1957, 12th August, 1980, and 2nd January, 1981, and they read thus: 1.. F. 5(48) E&T/57-II, dated December 14, 1957: "In exercise of the powers conferred by sub-section (5) of section 8 of the Central Sales Tax Act, 1956 (Central Act No. 74 of 1956), the State Government being satisfied that it is necessary so to do in the public interest, directs that no tax under the said Act shall be payable, on and from the fourteenth day of December, 1957, by any dealer having his place of business in the State of Rajasthan in respect of the sale by him to a registered dealer from any such place of business, of the following goods, in the course of inter-State trade and commerce, namely: (i) sugar, (ii) tobacco and its products, and (iii) all textiles, whether cotton, woollen or silken, includin....
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....iness on the thirteenth day of December 1957, separately in respect of- (i) the goods purchased by him from dealers registered under the said Act, and (ii) the goods otherwise purchased, whether from outside or within the State of Rajasthan, and (b) that every such dealer shall on or before the 10th July, 1958 pay to the appropriate assessing authority under the said Act, in respect of his goods of the aforesaid classes declared under clause (a), either (i) an amount in the case of sugar and tobacco, calculated at the existing rate of tax payable under the said Act on the total purchase price thereof increased by way of profit by 3 per cent and 6¼ per cent respectively and in the case of textiles eighty per cent of the amount calculated at the existing rate of tax payable under the said Act on the total purchase price thereof. (ii) an amount equal to the sum paid by him as tax under the said Act for the quarter of the previous year corresponding to the quarter of the current year in which the fourteenth day of December, 1957, falls: Provided that the amount referred to in clause (b) of this notification shall not be payable in respect of stock....
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.... not. (2) Dealers thus exempted would not be liable to pay tax on fents, rags, dyed and printed cloth including tyed and dyed cloth. 2.. F. 5(48)E&T/57 dated July 1, 1958: "In exercise of the powers conferred by sub-section (2) of section 4 of the Rajasthan Sales Tax Act, 1954 (Rajasthan Act XXIX of 1954) the State Government being of the opinion that it is necessary in the public interest so to do, does hereby unconditionally exempt from the 1st July, 1953, from tax, the sale of- (i) sugar including refined sugar, khandsari and palmyra sugar but excluding all preparations thereof such as sweets, sugar candy, confectionery, etc.; (ii) all varieties of tobacco manufactured or unmanufactured; (iii) all varieties of textiles (other than pure silk cloth) made wholly or partly of cotton, rayon, nylon, wool or artificial silk including handkerchiefs, towels, napkins, dusters, cotton velvets and velveteen, hosiery cloth in lengths excluding finished items thereof, tapes, niwars and laces." 3.. F. 5(96)FD(CT)/67-I dated February 20, 1968: "In exercise of the powers conferred by sub-section (2) of section 4 of the Rajasthan Sales Tax Act, 1954, the Government of Rajasthan ....
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....under this Act shall be payable by any dealer having his place of business in the State in respect of the sales by him, in the course of inter-State trade or commerce, from any such place of business of any such goods or classes of goods as may be specified in the notification, or that the tax on such sales shall be calculated at such lower rates than those specified in sub- section (1) or sub-section (2) as may be mentioned in the notification; (b) that in respect of all sales of goods or sales of such classes of goods as may be specified in the notification, which are made, in the course of inter- State trade or commerce, by any dealer having his place of business in the State or by any class of such dealers as may be specified in the notification to any person or to such class of persons as may be specified in the notification, no tax under this Act shall be payable or the tax on such sales shall be calculated at such lower rates than those specified in sub-section (1) or sub-section (2) as may be mentioned in the notification." 6.. The provisions of sections 3, 3A and 4 of the Rajasthan Sales Tax Act read thus: "3. Incidence of taxation.- (1) Subject to the provisions ....
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....x under and in accordance with the provisions of this Act and the rules made thereunder, whatever may be the amount or extent of his turnover, in respect of sales of goods made by him within the State on or after the commencement of the Rajasthan Sales Tax (Second Amendment) Act, 1958. (2) A dealer who is liable to pay tax under sub-section (1) shall be deemed to be a registered dealer for all purposes of this Act and the rules made thereunder. 4.. Act not to apply to certain sales.- (1) No tax shall be payable under this Act on sale or purchase of any of the exempted goods if the conditions specified in column 3 of the Schedule are satisfied. (2) Where the State Government is of opinion that it is necessary or expedient in the public interest so to do, the State Government may, by notification in the official Gazette, exempt, whether prospectively or retrospectively from tax the sale or purchase of any goods or class of goods or any person or class of persons on such conditions and on payment of such fee as may be specified in the notification. (3) The Excise and Taxation Department Notification No. F. 5(139) E.&T.57, dated the 11th day of August, 1959, publishe....